Global Trade This Week – June 27th, 2023
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Keenan Brugh 0:00
You're watching global trade this week with Pete mento and Doug Draper.
Doug Draper 0:10
Okay, welcome to a another edition of global trade this week, we come to you every single week. And my name is Doug Draper. I'm one of your hosts. And the other host, is on the other side of the United States, usually in New Hampshire. Live Free or Die, as they say out there, but it is Pete mento. My good friend Pete, how you doing today on this edition of global trade?
Pete Mento 0:36
Great, buddy. Great. And I am in New Hampshire. Live for your die. It's exciting to be home.
Doug Draper 0:43
Nice. Very cool. So we didn't talk about this before the show, but I know you were doing some tours yesterday with some colleges. How did that go?
Pete Mento 0:54
It went well, you know, my daughter. My daughter is dragging me to a bunch of different colleges. I went to an all women's university yesterday, which was pretty impressive. I'd never thought that I'd have a kid that considered one. But it was it was actually pretty impressive. The way they looked at the Education visited a predominantly, I guess, art space school. My daughter wants to be a writer. So I'll be paying her rent forever. But, you know, most of the schools that we go to are very artsy based. So we'll be seeing a lot more. So she plans on visiting some schools in Canada, a couple of Florida. So we'll be looking all over the place.
Doug Draper 1:39
Yes. dollar signs above your head. I can see them. I can see that. Yeah,
Pete Mento 1:45
lucky me, Doug.
Doug Draper 1:46
Yeah, yeah.
Pete Mento 1:47
So I keep getting these kids to go to boat school, you know, just go to sea
Doug Draper 1:53
or trade schools. So speaking of schools, we got to bring our school and our knowledge to our listeners. So let's just jump into this bad boy, I let off so you get the first topic.
Pete Mento 2:06
Yeah, it's a fun topic in that. It's, it's something that people are watching sort of, almost like it's an HBO drama, and that is the breakup of the alliance between MSc and Maersk, which I believe we've talked about a couple of times at this point that you brought it up the first time. And the breakup of MSC and Maersk is timely in that you have the the great reduction in cost on rates that's happening ever since the pandemic changes have have lessened. And they've gone their separate ways. Not a big deal, right. So you figure a partnership of this type code sharing as it were of this type. Not that big a deal. What is the big deal is that these two behemoths these two massive companies. MSC has the most tonnage now that actually dethrone Marish, to become the largest shipping company. They're going in a very different direction than Maersk. So now these two different companies, which were sort of a like minded operation, are setting themselves up strategically to go after the future of their business in a very different way. Maersk has taken a look at the global landscape for transportation. And as again, we've talked a lot about on the show invested a lot of money in logistics firms for pls Customs House brokerage technology, they've really gone into services, because they see it as an opportunity to create a more stable environment for profit. You know, ocean rates go up and down. And they're going to be in a position now hopefully, to be able to sell inland rates, air freight, forwarding services, warehousing, peel management, going more deeper into the supply chain. MSC is doubling down on being a massive carrier, and saying we're going to have so much space, and so much capacity, we're going to serve so much of the globe, that we're going to be a lower cost option, which is going to attract bcos. So we're just going to maintain the ability to keep that business, it's no longer it's going to be better for us two very different ways of doing business as an ocean carrier. And honestly, man, hapag Lloyd's kind of going in the same direction. So MSc and hapag political in one way. And then you have you know Maersk, who's very much going in a different one. It seemed a going in a very different one. The list goes on and on. So this seems to be the fork in the road. We're ocean carriers are making a decision about what the next 20 to 50 years are gonna look like. And it's going to be interesting from our perspective to get to watch.
Doug Draper 4:54
Yeah, yeah, when this when we first talked about this, we a couple things come to light Mine, right? Owning the rails, as far as the supply chain soup to nuts, farm to table, all that kind of good stuff and all those fancy, fun terms. But yeah, I think that the one of the terms I heard was land side, land side logistics and you you just put it very succinctly they're they're selling services. The unique thing here is that they're selling services to the end customer, where MSC is selling services to service providers, right. And being on this side, and on the sales side, my whole career, the noise level that you have when you sell services to service providers, is so much smaller than going direct to consumers because of the demands which I totally get. They both have their pros and the cons. And Maersk has the deep pockets to you know, expand their reach beyond beyond the steamship line into all the other different services. So they get the money they want to integrate on the rails, so to speak. There's a lot of competition out there, right? You just you wonder how much money are they going to throw at it in order to to get their foothold into that market. And then MSC like you said, they're doubling down and they're like, Hey, we're just going to make our chips efficient. We're going to look for ways to streamline and we're going to stay in our lane. And, you know, just provide, you know, the one leg of the supply chain. So if you had to pick and there's not a winner and a loser because it's all to be determined, but a post COVID Yes, ocean freight is a little bit crazy. Right now the rates are very, very low. But you've seen it in all kinds of industries, when push comes to shove, and things get crazy. You contract and you focus on your core competency. And that's what MSC is doing, where Maersk is doing the opposite. I guess if I had to say who right here and now and 2023 as a better strategy, I would probably say MSC, there's just a tremendous amount of competition and a lot of money that's going to be expend to have that outreach. So it'll be interesting. But if there's a company that could do it, I would say would be married, they got a lot of cash. And if they got a good strategy, then more power to them.
Pete Mento 7:13
I'll be interested to watch man, I couldn't predict if I fight even if I had a lot more information, which is what I would need. But everyone's being told to diversify at this point, which is clear what Ms. What Maersk is doing. But then again, you said so much of our industry. What it what FedEx is doing, what UPS is doing is really doubling down on just what you're great at. So it's it's definitely two distinct businesses doing what appears to be the recipe of the day these days. So fun to watch, man.
Doug Draper 7:47
Yeah, yeah, for sure. So well, we're gonna, for my topic, we're gonna stick with the the ocean freight. And this is something that's been happening for a little while it's starting to get a little attention. I read about it, I think last week, but there are canal water restrictions going on down in in Panama on the Panama Canal. Apparently, it's one of the worst droughts since the 1950s. It's a mother nature, it has nothing to do with the finances and what's impacted it, it has simply to do with whether you could spin it and we're not going to go down a wormhole with you know, global warming or environmental impacts. I'm simply here to say that water levels are down, that means there's less weight, less containers that can be put on a vessel to move through there. If the waters down, you can only depress it so so much before you hit bottom, so to speak. So the question here is, is this drought in this situation? How long is it going to be? How much of an impact is it going to be? Because you can only jam so many vessels through that port when the water is low? Is it going to be substantial enough to have any type of ripple effect now that it's become more popular, to bring your products around to the east coast and get rid of the chaos? That was in Los Angeles now that LA and Long Beach now that's subsided a little bit, but we can't pivot immediately. And there's lots of routings and lots of companies that said that's not you know, it's not going to happen to us again, let's get this stuff to the east coast. So there's more volume through going through the canal, the water level is lower. There's only so much throughput that you can manage at that time. So it hasn't gotten a lot of attention. I've seen a couple articles on it. So the question to you and the feedback, is it going to be a blip and nobody's going to really pay attention? Or is it going to be a substantial enough impact that we're going to start seeing delays, cost increases to mitigate what's going on down there? I can see both sides of the equation but it's Just interesting. And there is no fix. There's nobody to blame. I mean, you could get super go up the food chain and say, Well, we are all to blame because of putting more carbon in the air and all that kind of stuff that's for a different podcast. But I don't know, have you heard about a Pete is a big enough blip to really be concerned about?
Pete Mento 10:21
Well, if there's any good news, buddy, it said volumes are down. So I think that you're going to see, because of the cost of operating to the East Coast, as much as the East Coast has enjoyed an increase in volume, it's more profitable to operate to the west coast. So I, I don't know how else to put this to consumers. But whether they like it or not, they're going to be using one beach again. So that's part of this. Second of all, transiting the Panama Canal, which I did as a young man. It's not, it's not as technically advanced and as glamorous as you think. There's a reason why they call the Suez Canal, the Panama Canal, the trench in the ditch. I mean, they literally like the big dog, the dog, like a hole through a country, I mean, there's, and then they, they've got locks that you go through. And it's the most low tech crap you've ever seen. There's no water, there's no chips. And if you don't have enough flow state to go through those things, you're putting the vessel in the canal in danger. So it could slow it down. But I think volume is going to be low enough, Doug, that it's not going to be it's gonna be noticeable, but it's not going to be an emergency, in one way or the other. You're going to see tonnage being pushed off to different services right now. I don't think it's really going to be that big of a negative effect. It's an excellent lesson, though. It's an excellent last lesson, and the importance of the canal, how we need to continue to modernize it, and how important it was that we recently did, and how we need to continue to do it.
Doug Draper 12:06
Yeah. Interesting. All right. Well, oftentimes one of the most entertaining times of our show, which is halftime to run to listen to, what, what
Pete Mento 12:18
to who is it most entertaining, Doug? You will?
Doug Draper 12:23
Because most of the most of the comments I make on the LinkedIn, the first thing is that is the comments that have nothing to do with our industry that we've talked about at halftime. So to me, it's to me, and hopefully our audience, so But my hope
Pete Mento 12:40
was that, I hope that our sponsor loves him.
Doug Draper 12:42
Yeah, well, I think Keenan sitting back and enjoying life and Breckenridge during this, during this, this show, so hopefully, he will, maybe he hasn't jumped on his bike yet to do a mountain bike. But I'm glad you brought him up because cap logistics puts this thing together. They're the ones that bring us halftime. And we're excited because it gives us the platform and the soapbox to get up and talk about whatever the heck we want. So with that being said, what? Who wants to jump in on this one? You or me?
Pete Mento 13:13
I'll go first. Let's just get it.
Doug Draper 13:15
I figured as much with your topic.
Pete Mento 13:18
Yeah. So I I am absolutely enraptured at the idea of the sucker, Berg, Musk cage fight. So the idea that two of the richest men on planet Earth would actually just even consider, even if it's even if it's not a joke at the height, if it's just kind of possible that these two would consider stripping down to their underwear. And putting on like, what three ounce gloves and pretending to try to hurt each other for three two minute rounds. What a time to be alive, Doug. You know, because I'm sure that there are many people who would love to see the Facebook guy get beat up. And there's a lot of people who'd love to see the the Tesla guy get beat up or the Twitter guy. I don't know. For me as a lifelong, absolute obsessed person with combat sports. This is fantastic. So first of all, I have a couple of questions. Doug, would you watch it? If this does happen, would you watch it? Would you pay to watch it? It's Question number two. If it happens, who you got?
Doug Draper 14:35
No, no, and probably is Zuckerberg and I think he's just first of all Elon Musk in any pictures you've seen looks a little bit doughy and out of shape. And I think Zuckerberg could come in with a ship or something and just take it out real quick. The flight would be quick because he played a little dirty or come up with something that would take them out pretty fast. So, no, I wouldn't watch it. No, I wouldn't pay for it. And I'll take Zuckerberg,
Pete Mento 15:05
I would, I would, I can't wait to watch it. I might, if it's like, I would probably take the week off beforehand to pre draft and be so excited. I would actually try to see it live. So if they did this in Vegas, or like the UFC Apex center, I would call everyone I knew I would, I would be texting rogue and like I would do everything I could to be there, right? What I pay for it? Hell, yes. Hell yes. I mean, these guys are talking about putting a billion dollars up to charity for the loser. So I'm all about it, Doug. And then as far as who's going to win, I mean, right now as constituted. Elon Musk is much older. He's out of shape. And Zuckerberg trains me and even though I think he's a white belt, I don't think they think he's a blue belt in jujitsu. But he does train and having done jujitsu now for well over a decade, I can tell you, you get on the ground with someone who's never wrestled, who's never done any kind of grappling against someone who's had enough jujitsu. They're going to absolutely take the fight over so it's not going to be much of a fight. But I did enjoy the fact today that Elon Musk's mom said I'm calling the fight off, boys, knock it off. So she actually did come out today and said, there'll be no fight. You guys need to knock it off. I thought that was adorable. Yeah,
Doug Draper 16:25
yeah. Well, here's mom coming to the rescue once again,
Pete Mento 16:29
Doug, if you're speaking in Vegas or something, we're going you mean, Kenan? We're going No.
Doug Draper 16:41
I'm not interested? No. Anyway, all right, buddy. Here's here's my halftime and it's funny, because before the show you were showing a magazine about your alma mater. And that's what my, my podcast is about. Throw that thing up there real quick. Harvard, Larry 29. So anyway, I'm going to try to keep this one succinct, because I just have I have a college graduate, and my daughter is going to be a senior. So I'm on the back end of college, and you're on the front end, right. So I don't want to go down a wormhole here with the whole perspective of college and what it means and secondary education. But my point with Harvard is that there was a Harvard Business School professor who focuses on behavioral sciences and stuff, I'm not even sure how a business professor and Behavioral Sciences to me those don't seem to mesh very well. But this individual is accused of falsifying results on several of her studies over the course of her tenure at Harvard. And the funny thing is one of the studies that this was alleged to participate in was actually a study on truthfulness. And it was essentially it's kind of a cool study, if you make a statement about your truthful comments at the top of the page, and then you write an essay or answer the prompt, or do you answer the prompt and then write your name on the bottom that says everything you just said was truthful. So that was the that was the test or the you know, the study. So anyway, it was data manipulation, they went in there and made some changes. It's kind of hush hush. So you know, kind of like the longshoreman strike, you don't really know what the details are. And Harvard's not going to release that because they don't want to look silly. But anyway, data manipulation, falsification of records. I don't know man, it's just another example of I'm, I'm struggling with the value of a college education in this day and age. I've just gotten through writing checks, and you're about to write the checks. I think kids nowadays, this is my soapbox for 25 seconds. I think that kids nowadays out of post COVID are probably a little bit immature, to jump into the shock value of what it is to go away to college. I think everybody should take a gap year. And I think there's lots of alternative options that are out there. trade schools, things of that nature. And Pete as you know, I had an I started an LSAT and an AC T prep company and essay writing, and the amount of money and the pressure that parents put on these kids to study study study, to get a grade to get a number to take it to the next level is stressful. And so I don't know, everybody is stressed to make sure they are the top of their game. And one of the you know, the preeminent schools in the world. Harvard, you know, has a little Mickey Mouse going on there with you know, manipulation of studies and data. So anyway, that's my halftime There you go. Oh, you make your comments and then I have one more Casa Bonita update.
Pete Mento 19:56
Possibly need a baby to do things about what you First of all, I'm halfway through the college tuition experience. Oldest is an architect went to a state school did not destroy me financially. Thank you. Oldest daughter, Alden, and oldest youngest son, college athlete. So most of that is being paid for youngest daughter artist. God saved me. So, and as far as the university system goes, I'm Harvard University's worst alumnus, because I am not at all impressed with the school. And I regularly tell people how it's really nothing but marketing, that I had been more impressed by people who went to some state university for their master's degree or undergrad than most of the people I went to Harvard with. So, you know, don't be impressed just because you see somebody went to that school. Now, as far as this cheating scandal goes, I think it's delicious duck. So here's the reason why it Professor Gino is famous because of this study. And the way that academic studies work is, I write a study, you use my, my findings for my study. So now your study is using information from my study, and someone uses your study. And now because I'm famous, everybody wants to co author things with my study. So now everyone's gonna ask now that I've been found out to be a fraud. Everyone's wondering if their studies are fraud. So she's had this viral, you know, kind of kind of, it's almost like a, like a, like a pandemic, right? Like, everything she's touched? Is a question. And there's a lot of questions as to wish he ever honest. Was there any academic honesty? And how can a university like Harvard not have had more oversight if the work she was doing? Easy, was generating money, and prestige? And it made them look good? So why would they do a whole lot more extra looking over their shoulder at the work when it was benefiting them? Not to? So guess what, fair, fair, Harvard University, you're getting what you deserve, because you're not doing the work academically that you should have been? Yeah, don't do one more thing, constantly. When I was at this one school with my daughter yesterday, one of the parents said, so how do I find out if the professors are getting good here? Are they are they reviewed, and the student giving the tour who was wonderful, by the way, said where you can go and rate my professor.com? That's probably the best way to find out from the students. And they said, So are those what are those like as well, they're brutally honest, taking from a college professor, they're brutally honest. And the parents as well as they should be. I mean, I don't want my daughter taking a class from someone who isn't nice, or you know, gives too much work or, and I couldn't help myself and my poor daughter's. She hates going on these tours of me. And I said, Yes, heaven forbid that the money you're spending on college is not a consumer experience for your daughter. I mean, we wouldn't want her to go somewhere, and not just have the most delightful time for the money. mean, she's not here to learn, right? She's here for four years of fun and frivolity. And I mean, you know, the rest of the tour was a little awkward. I'd say, Doug, from that point forward, but I'm not generally going to care.
Doug Draper 23:33
So let me hear about it. Okay, so the for timed entries, like we talked about this, there's timed entries. The 29th is when they're supposed to have you know, the first time entry in the small group, it's not open for a few hours on the 29th. And then again, through the first or something like that. But the big news this week is that there's going to be no tipping. And everybody that works there is going to get $30 an hour. Yeah, yeah. So no tipping now how all that works and the nuances of it and what happens if you want to tip I don't know that. But the big thing is that there is if you want to work at Casa Bonita, you're gonna make 30 bucks an hour. No tips. So
Pete Mento 24:14
yeah. Oh, am I jumping off a cliff for 30 bucks an hour? Because I'll wear the gorilla shoe. Yeah, no problem with that. Yeah, so while we get people to do a show live from Casa Bonita, we could kick in on that find out if they'd let us
Doug Draper 24:32
hit we can do some legwork on it. But you know, muggles like you and I are going to be able to get in there Free Willy nilly for for several months. And that's we want to put our name on the list and and
Pete Mento 24:42
it's important for the show to have a goal. So I think that should be the show's goal is live from Casablanca. It's global trade this week.
Doug Draper 24:50
Yes. That is the statement that will make 2023 a success. Forget the topics we're getting are right or wrong. forget any of our insight If that statement can be made before December 31, it will be a successful year.
Pete Mento 25:05
Do we know if the food's going to be just as absolutely atrocious as it used to be?
Doug Draper 25:09
Now that is a big deal. They're hyping the fact that they got this executive chef. They're limiting the menu to like nine or 10 items, and it's supposed to be good. So we'll see.
Pete Mento 25:20
All right, can't wait. All right, Justice Cartman, man, it's gonna be awesome.
Doug Draper 25:24
Yeah. All right. So let's shift gears back into the purpose of the show, which is global trade. So take take it away on your second topic.
Pete Mento 25:32
So the second topic is one that's beginning to come around. So we've been reading a lot about this idea of divert diversifying again, diversifying your supply chain, making it more resilient, being a little less at the, at the will and whim of countries that maybe are not as politically aligned with us. And a lot of this comes from what we've learned the lessons of COVID, early 90s, to mid 90s, was the era of hyperglobalisation. There's an excellent miniseries I tell everyone to watch, called commanding heights that was on PBS, that really gets into the beginnings of the truly global economy, how it started, just the real birth of the concept, and how it's impacted the world economically. It's a fantastic mini series based on a wonderful book that won the Pulitzer Prize. The next era of that was this moderation of the global economy, where we all began to create rules about how it was going to work. And many of those rules about how it was going to work came from just a common tribal understanding amongst these different nations, you know, don't step on my toes, I won't step on yours. Let's try to find ways to work with one another. It was mostly largely written and and prescribed by business itself. And from time to time, politics would be interjected. But it wasn't, it was it was this never ceasing feeling that politics was driving a lot of the decisions on trade, then with the the Trump administration and COVID. And that's really where the turning point happens. With the Trump administration and COVID, we see two very fascinating things begin to happen. First, of course, is the pandemic, and our desires as supply chain professionals to make a more diversified, more resilient supply chain that isn't as dependent on one particular region, or a small collection of people and places to get our things. And then second of all, this rise of of trade nationalism, which has come back, it was it was more or less the case, 1970s, early 1980s, that countries were more concerned about where their things came from. And they tried to keep that money at home, we're seeing that again, it may be if not necessarily at home close to home. If you're a European country, buy your things from the European Union and United Kingdom. If you're an American, North American country, if you consider it if there's someplace you could buy it from within the usmca nations, or within Latin America or the Caribbean, or an align politically country. So the question now that's between two rises, at what point have we jumped the shark? You know, and how much of what we're seeing now is really more politically driven, than financially driven, market driven? Are we becoming more and more diverse, because we're being forced to out of political motivation are becoming more and more diverse in our supply chains, because it's the right thing to do from a market perspective. And now that rubber is hitting the road with large corporations saying, We're going to leave some of our production in China, take it to Southeast Asia, take it to Mexico, bring it back home, in certain instances. And Chinese companies saying we're going to keep production in China, regardless of the fact that it might be a little more expensive, because it's best for people in China to work. It's better for our brand to have these things here. And then there are governmental concerns about keeping those people working there as well. So I don't know, Doug, it's, it's getting to the point now where I think we're gonna see a lot of light shined on just why exactly those decisions are being made, because COVID appears to be behind us. And now politics is taking very much a front row seat. Yeah.
Doug Draper 29:27
Well, whenever you're saying is it economy or political without in my opinion, without question, its political, right. The cohesiveness of a, you know, hyper globalized country there, and I'll go to the Elon Musk and the Zuckerberg there has to be a ying and the yang, a protagonist and an antagonist. There has to be one side or the other. There has to be opposing forces for there to be harmony in the world. And if you rewind the show, there several instances where we spoke about that, that you could draw kind of a tangent that Elon Musk in, in, in the Zuckerberg thing, there has to be a part A and part B. So the homogeneous and hyperglobalisation Sounds good. It's a good soundbite. But you know, the bottom line is, there has to be some level of conflict, to have the whole thing work together. And I think COVID was a natural divider to some degree, right? Divide may be the wrong word, but the separatist nature of it and so even if it was going to a hyper, hyper globalization, everybody was feeling all kumbaya COVID to shut that thing down, everybody, you know, brought back in, and they had to protect themselves and things of that nature, rightfully so it was a freaking pandemic, right. But to get away from that, and get back maybe to where we used to be, I don't know if it's going to happen, the politics of it will be front and center, it'll be pushed, but the bottom line is hyperglobalisation will be promoted, as long as there's a financial gain in it for one party or the other, which again, means there's one party or another, and there has to be some conflict, or stability. So I don't know if I really answered your question or not. But
Pete Mento 31:21
yeah, so yeah. And I think we're gonna see more as time goes on. And we need to start paying attention to this. As businesses, I think we'll, we'll make more of these decisions and politicians, because we're the ones that pay the politicians.
Doug Draper 31:35
Yep. Yep. Yep. So cool. Well, from from my last topic, right, here's something that you may not have known. I certainly didn't, but you're more global well versed individual than myself. Did you know The Department of Energy gives out loans? Yeah. And and, well, they do. And they just gave fote Ford Motor Company in a, a 9.2 billion with a B loan to build three evey battery factories here in the US, it's a combination of Ford, and this Korean Evie battery company. It has a separate name, I can't remember the name of it, but they're gonna think build two plants in Kentucky, one in Tennessee, or one in Tennessee, and two in Kentucky. So the first thing is like, I had no clue that Department of Energy was giving loans out of that size and scope, right. And that's all fine and good. But it'll go to another example of how important the battery supply chain and the the Evie supply chain that's coming out, we've talked about, you're just not planting the materials that make the battery the you know, the lithium and all of the the, the minerals that we are for, that are not produced here that are being imported from countries all over the place. The supply chain, my whole point with this feed is its supply chain that's going to surround battery manufacturing, which is supporting the electrical V, the electric vehicle industry, which is being heavily promoted by all kinds of players on both sides of the fence, so to speak. The global battery supply chain is going to be very interesting, and I don't think we're ready for it. And the companies say they're ready for it. But when they look at the liability, and oh, by the way, you are brokering an entire aircraft full of batteries that can blow up in the sky. Maybe that's a little dramatic. But I think the battery supply chain is going to be a big deal. I think we're woefully prepared for it. And it's going to hit us right in the face before we know about it. So I think that topic, maybe a year or two out is going to be a hot topic I think you'll you'll read about it but it there's so much money and so much effort and so much focus on it is that the supply chain that keeps it moving is woefully unprepared for this explosion, pardon my pun of what's coming down the road and the need to move these products, commodities and, and items effectively.
Pete Mento 34:16
Well, you're not being dramatic at all, but one of the most common frustrations for people that move hazardous goods is batteries. Just lithium batteries. They're in so many things. And they are a hazardous material that has to be accounted for. Anyone that's ever flown on a plane. They asked you in your pack luggage. Do you have any lithium ion batteries? Do you have any e cigarettes? If your bag is with you, and you have to check it last minute they asked you do you have any portable batteries in your bag? So it it's a concern? And it wouldn't be? It wouldn't be dramatic, Doug if it weren't for the fact that these things have caught fire on planes. And once they do that plane doesn't have a shot in hell. So it is is frustrating, it is scary it is worrisome and EVS catch fire. Battery technology is still something that is, it's still developing leaps and bounds, but it's still developing. And developing technology is going to have parts of it that we're still learning about and trying to make safe supply chain associated with it has to deal with dangerous goods, but also has to deal with the fact that it's so diverse in the different materials that are used for it. Not all those places that these things come from, are necessarily easy to get things from. So there might be stuff coming from it, but not necessarily going to it, which increases the cost, as you will know. And America is going headlong into the idea of EVs with out and understanding of just how difficult it is to supply all the raw materials, and real understanding for the inefficiency of gathering those things to make them to die. I think you're, you're doing a good job of discussing all the different ways that we have to wrestle with this. I'll still be driving a diesel truck and probably when it's all over with it. Yeah, it's madness. And the government's gonna do everything they can to try to speed it along. If that means loans, these loans, if that means regulation to make it harder to drive a fossil fuel car. We'll do that too.
Doug Draper 36:21
Yep, yep. It'll be interesting. Our industry is up for interesting dance related to that commodity and vertical.
Pete Mento 36:30
Yep. All right. Well, that's gonna do it for this particular edition of global trade. This week. Thank you to our sponsors cap logistics for their unwavering support of the show. Thank you to you for listening. And for telling your friends please do subscribe. If you're listening to us. Subscribe on whatever platform you happen to listen to. And if you watch us on YouTube know that you can catch us on just about any audio platform for the podcast. Thanks to Keenan back of the booth. Thanks to all of you. And thank you, Doug, as always great to see you all again next week.
Doug Draper 37:00
Okay, thanks.
Transcribed by https://otter.ai